Question
Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $79,958 per year.
Bartlett Car Wash Company is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $79,958 per year. Other information about this proposed project follows:
| Initial investment | $ 377,160 |
|---|---|
| Useful life | 7 years |
| Salvage value | $ 49,000 |
Assume straight line depreciation method is used.
Required:
- Calculate the accounting rate of return for Bartlett.
Note: Round your percentage answer to 2 decimal places.
- Calculate the payback period for Bartlett.
Note: Round your answer to 2 decimal places.
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
13th Edition
0273730045, 978-0273730040
